Mortgage broker - ask me anything

K_S

Bubbles81 said:

Hi all, a newbie here I'm in a similar, although different situation to the original post. Currently selling a shared ownership property to buy another one, however on my file I have a default of £3.4k that was added in May 2020 and an account that has been marked as a late payment for the last 5.5 years (it literally says 6 months late) which is £506 I'm disputing both at the moment as the 'late payment' seems that it should have been defaulted which would mean it comes off the account this year I can pay it off now but want it to be accurately recorded so that it falls of my file and doesn't last an additional 6 years. The default happened after an immaculate payment history then the  interest rate rose so much that the minimum payment was £300 and I was at that point unable to keep up. I had 1 or 2 mortgage late payments in 2019 but have been all good consistently for the past 12+ months and prior to that. Have gone to the broker who the HA advised for affordability check, which I passed then they did a hard search with Barclays even though I told them the situation and so i've been trying to find someone who specialises in 'adverse' credit and have even looked at lending criteria of building society lenders myself. My flat is going through the selling process so need to secure something and am just not sure where to turn, and adverse credit specialists are charging £2k which is wow. Does this sound like a hopeless case or could this still be worked with. The information also shows up different on both equifax and experian reports. Thanks for any information in advance x

@bubbles81 What's the LTV you are looking at? Are you buying another SO property?

K_S

Bobthebuildercanyoufixit said:

Hi,

is it possible to get a mortgage with a deposit of 5% if i have payday loans shown on credit file? Most recent payday loan was used 10months ago and was paid in full straight away after taking out.

many thanks @K_S

@Bobthebuildercanyoufixit Very very unlikely. 

Bubbles81

K_S said:

Bubbles81 said:

Hi all, a newbie here I'm in a similar, although different situation to the original post. Currently selling a shared ownership property to buy another one, however on my file I have a default of £3.4k that was added in May 2020 and an account that has been marked as a late payment for the last 5.5 years (it literally says 6 months late) which is £506 I'm disputing both at the moment as the 'late payment' seems that it should have been defaulted which would mean it comes off the account this year I can pay it off now but want it to be accurately recorded so that it falls of my file and doesn't last an additional 6 years. The default happened after an immaculate payment history then the  interest rate rose so much that the minimum payment was £300 and I was at that point unable to keep up. I had 1 or 2 mortgage late payments in 2019 but have been all good consistently for the past 12+ months and prior to that. Have gone to the broker who the HA advised for affordability check, which I passed then they did a hard search with Barclays even though I told them the situation and so i've been trying to find someone who specialises in 'adverse' credit and have even looked at lending criteria of building society lenders myself. My flat is going through the selling process so need to secure something and am just not sure where to turn, and adverse credit specialists are charging £2k which is wow. Does this sound like a hopeless case or could this still be worked with. The information also shows up different on both equifax and experian reports. Thanks for any information in advance x

@bubbles81 What's the LTV you are looking at? Are you buying another SO property?

I could put down 10% on a 40% share or 5% on a 75% share if I were able to.

Bubbles81

Bubbles81 said:

K_S said:

Bubbles81 said:

Hi all, a newbie here I'm in a similar, although different situation to the original post. Currently selling a shared ownership property to buy another one, however on my file I have a default of £3.4k that was added in May 2020 and an account that has been marked as a late payment for the last 5.5 years (it literally says 6 months late) which is £506 I'm disputing both at the moment as the 'late payment' seems that it should have been defaulted which would mean it comes off the account this year I can pay it off now but want it to be accurately recorded so that it falls of my file and doesn't last an additional 6 years. The default happened after an immaculate payment history then the  interest rate rose so much that the minimum payment was £300 and I was at that point unable to keep up. I had 1 or 2 mortgage late payments in 2019 but have been all good consistently for the past 12+ months and prior to that. Have gone to the broker who the HA advised for affordability check, which I passed then they did a hard search with Barclays even though I told them the situation and so i've been trying to find someone who specialises in 'adverse' credit and have even looked at lending criteria of building society lenders myself. My flat is going through the selling process so need to secure something and am just not sure where to turn, and adverse credit specialists are charging £2k which is wow. Does this sound like a hopeless case or could this still be worked with. The information also shows up different on both equifax and experian reports. Thanks for any information in advance x

@bubbles81 What's the LTV you are looking at? Are you buying another SO property?

I could put down 10% on a 40% share or 5% on a 75% share if I were able to.

Sorry forgot to say, yes its another shared ownership property

masterplan33

Looking to get mortgage towards the end of this year, what are my chances given my circumstances?

Self Employed
Last 2 SA302 are 32k and 38k
Looking to buy house around 120k
Deposit of around 20k

I have 2 CCjs - One is 4 year and other is 3 year old, both satisfied.
4 defaults - 3 end around September 2022 and other one 2024. All now satisfied.
No missed payments in last 12 months.
No other debt at all.


Thanks

K_S

masterplan33 said:

Looking to get mortgage towards the end of this year, what are my chances given my circumstances?

Self Employed
Last 2 SA302 are 32k and 38k
Looking to buy house around 120k
Deposit of around 20k

I have 2 CCjs - One is 4 year and other is 3 year old, both satisfied.
4 defaults - 3 end around September 2022 and other one 2024. All now satisfied.
No missed payments in last 12 months.
No other debt at all.


Thanks

@masterplan33 85% LTV, all CCJs and defaults over 3 years since registered, clean credit history for 12+ months. As long as you are trading back around normal levels, you should have options.

K_S

Bubbles81 said:

K_S said:

Bubbles81 said:

Hi all, a newbie here I'm in a similar, although different situation to the original post. Currently selling a shared ownership property to buy another one, however on my file I have a default of £3.4k that was added in May 2020 and an account that has been marked as a late payment for the last 5.5 years (it literally says 6 months late) which is £506 I'm disputing both at the moment as the 'late payment' seems that it should have been defaulted which would mean it comes off the account this year I can pay it off now but want it to be accurately recorded so that it falls of my file and doesn't last an additional 6 years. The default happened after an immaculate payment history then the  interest rate rose so much that the minimum payment was £300 and I was at that point unable to keep up. I had 1 or 2 mortgage late payments in 2019 but have been all good consistently for the past 12+ months and prior to that. Have gone to the broker who the HA advised for affordability check, which I passed then they did a hard search with Barclays even though I told them the situation and so i've been trying to find someone who specialises in 'adverse' credit and have even looked at lending criteria of building society lenders myself. My flat is going through the selling process so need to secure something and am just not sure where to turn, and adverse credit specialists are charging £2k which is wow. Does this sound like a hopeless case or could this still be worked with. The information also shows up different on both equifax and experian reports. Thanks for any information in advance x

@bubbles81 What's the LTV you are looking at? Are you buying another SO property?

I could put down 10% on a 40% share or 5% on a 75% share if I were able to.

@bubbles81 I do a lot of high-LTV SO mortgages, but at 90% LTV, your £3k+ May 2020 default (is it satisfied?) is likely to be a show-stopper, at least until it's been a year since it was satisfied.

katykins05

Hello! 

I am looking for reassurance i suppose as new to this and suffer with anxiety so really struggling at the moment. 

My husband and I have had an offer accepted at £260,000 with a £39,000 deposit so LTV of 85%. An AIP was granted for this. Our combined income is £63,500 and we have 1 loan each totalling £435 pcm in repayments. No childcare costs or other committed spending. 

The application went in with Natinowide on 13/04/21 and the valuation has been booked for 28/04/21.we used a broker to do this. 

I guess I have 2 questions- will the underwriters likely do the bulk of their assessment before valuation or wait until after to start? 

And if clearscore and experian scores are high for both us and we have no ccjs, late payments or anything adverse, does this mean the hard credit check should be ok? I don't have anything I know of but the worrier in me thinks what if someone took out credit in my name etc? Would we have got an AIP and high credit scores if that was the case? 

Sorry to sound mental, I can't sleep for my doomsday scenario-generating brain! 


Thank you in advance for any help you can give! 

LittleNinja

We complete on 30th April. Will our first payment be in May or June? 

We are with nationwide if that makes a difference.

silvermountains

Hello! At a 90% LTV, would you go for a 5 year (3.49%) or 2 year (2.99%) fix right now? 

Considerations include

1. That we are probably buying at the top of the 'pandemic bubble' market right now, so concerned that the house value might not automatically go up over the next two years.  
2. If the house value stayed exactly the same, we would just scrape into the 85% band after two years.
3. We are hoping to have children and so in two years I would either be on maternity leave or would be just about to incur £££ nursery fees.
4. We generally have a low approach to risk.